RFID Asia :: Radio Frequency Identification (RFID) Community in Asia


        

RFID in Supply Chain Environment (Part 1)

 

Sunday, November 11, 2007
Jack Tay.
by Jack Tay

While RFID (radio frequency identification) technology is no longer a new or emerging technology, its adoption in Asia Pacific is sporadic, with pockets of accelerated adoption in certain economies, and certain industries. Against the backdrop of regulatory requirements and internal audit controls which put more stringent demands on operating enterprises, whereby more accountability and traceability must be accomplished, the RFID technology adoption situation would theoretically imply that RFID systems would become commonplace everywhere in Asia.

Some countries, such as China, South Korea and Japan, have successful and more widespread adoption of RFID than other countries in Asia Pacific. Many RFID adoptions come from established sites which have other forms of supply chain implementations, and therefore, are considered retrofitted RFID adoptions. While RFID implementations from scratch would be considered the easiest from a technological point of view, we must not discount that many sites would require a phased-in approach of RFID, starting perhaps with test sites to ensure compatibility with enterprise and back-end software.

What makes RFID great for the modern supply chain environment?

Unlike traditional barcode systems, RFID readers do not require a visual line of sight. This can be useful for proximity scanning of RFID tags on tagged items, rather than demanding personnel to be positioned visually within the logistics items to check their availability. Therefore, RFID systems can be extremely useful for supply chain environments that use optimized storage planning, where items can be stacked back to back. And because of proximity scanning rather than line of sight requirements, more data collection along the entire supply chain can be set up easily, without dramatic process changes.

With RFID tags, whether passive or especially active tags, more information can be stored on the tags, compared to traditional barcodes. For active RFID tags, data can be updated enroute (read/write capability), which provide even more flexibility for supply chain backend systems and their interaction.

Increasing adoption of RFID

RFID is also more practical than ever before, with clear business cases being demonstrated for asset management and supply chain operations alike. For example, TNT Logistics reduced its truck load verification time 24 percent by using RFID to automatically record goods loaded onto its trailers. Hundreds of other companies around the world are also implementing RFID-based shipping, receiving and inventory visibility applications.

A sub-trend behind RFID adoption for inventory, warehouse and distribution operations is the use of vehicle-mounted and other mobile RFID readers to enhance or replace stationary models. With a mobile infrastructure, companies don’t need to purchase, install and maintain a separate RFID reader for each dock door. Forklift-mounted and handheld readers can cover multiple docks, and be used in warehouse aisles and elsewhere throughout the facility, further reducing the required RFID investment. Plus, they put information directly in the user’s hands, so they can prevent errors, rather than just record them after they occur.

Container tracking and RFID

Inventory Boxes.With the global struggle against terror or theft, it is imperative that any component of the entire supply chain must be secured, and authenticated, so that there is no breakdown in the process.

With RFID tagging, containers, and pallets, can all be adequately tracked and authenticated, along every step of the process from manufacturing to the ultimate client’s location, however remote the location may be. This is not merely a customer requirement (often to comply with internal controls and procedures), but also increasingly a governmental requirement in many locations (especially in the United States and Europe). With adequate tracking through RFID tags, shippers and manufacturers can account to governments and customers, but also build in a "shield" to protect their brands, given that brands these days can break easily due to some lapses in accountability.

The second part of this article will discuss the RFID adoption in automotive manufacturing and a recommended approach to implement RFID.

The writer is the Regional Marketing Manager of Intermec Asia Pacific.

RFID in Supply Chain Environment (Part 2)


Send your comments and discuss.

Labels: , , , , , , , , ,

 


RFID Asia on Facebook

 

RFID Asia Journals




QR Code

   QR Code of RFID Asia.